The Daily Times Newspaper

IMF Likely to Cut Further Economic Growth Forecast

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The International Monetary Fund (IMF) is likely to lower its growth forecast for the global economy even further next month, partly because of the consequences of the war in Ukraine.

 

An IMF spokesman said: In April, the forecast was already lowered to 3.6 percent, from a previously forecast 4.4 percent.

In addition to the impact of the war in Ukraine, IMF spokesman Gerry Rice also points to high inflation and a stronger-than-expected weakening of the Chinese economy due to the corona lockdowns in the country. He says that the global economy is growing more slowly and that a recession could even occur in several countries.

According to Rice, there is a kind of confluence of crises in the world. The IMF will release new estimates in July.

Earlier this week, the World Bank lowered its growth forecast for the global economy from 3.2 percent to 2.9 percent. The Organization for Economic Co-operation and Development (OECD) lowered its forecast this week to 3 percent, from a previously forecast of 4.5 percent.

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